LMJ FINANCIAL MANAGEMENT LTD
SERVICE PROPOSITION PACK
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About Us
LMJ Financial Management has been established to provide clients with high standards of
service including quality advice. Our advisers provide comprehensive financial planning
advice to private clients, businesses and entrepreneurs.
We have the expertise, experience and skills to guide you through the financial world with
its increasing complexity and change, and to interpret simply and effectively the implications
these may bring.
We present our clients with a bespoke financial strategy to provide them with the structure
needed to attain their short, medium and long-term financial goals, within the limits of
available financial resources.
It is imperative that we work within taxation and legal frameworks, which are constantly
changing. The implications of these will be unique to you and as such there will be no
standardised approach to our services. We aim to provide solutions that work throughout
the many stages of your life.
As Independent Financial Advisers we have no links or ties to any one insurance or
investment company. This means that we are able to give you unbiased and objective
advice, and recommend the most appropriate solutions for your circumstances.
We advocate an active and ongoing relationship, in order to periodically review the progress
of the recommended strategy.
LMJ Financial Management Ltd can be contacted at
Upper South Hall
Bullen Farm Business Centre
Bullen Lane
East Peckham
Tonbridge
Kent TN12 5LX
Our Approach
A three stage financial planning process is implemented to provide you with a strategy to
make the best possible use of your financial resources and to help you achieve, where
possible, your financial objectives.
The three stages of the process are as follows:
1. Advice
This can be broken down into the following:
Initial Assessment & Data Gathering
We offer an initial meeting with no cost or obligation to you. If you then instruct us to act for
you, we will obtain all the background information we need about your financial affairs.
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Analysis of Data and Research Planning
Once we have gathered the information we are able to begin forming an opinion on the
suitability of any existing arrangements. Once we have compiled all the information, we will
prepare a personalised strategic financial plan based on your objectives.
Recommendation Meeting
The next stage is to meet with you to discuss our recommendations and agree your
preferred strategy.
2. Implementation
Once we have your agreement we will oversee the implementation of the strategy, which
will include:
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Preparing all necessary paperwork
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Arranging medical and financial underwriting, if appropriate
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Liaising with contacts and other advisers
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Checking and issuing documentation
We will control this process and minimise disruption and inconvenience to you, by
eliminating the need for you to contact other organizations, or deal with their process.
3. Ongoing Service
In order to ensure your objectives are achieved, it is important to make sure that the
strategy we have implemented continues to be appropriate. We therefore recommend that
we undertake a review process, which provides you with a proactive ongoing service. We
offer three alternative ongoing service propositions which will be explained later.
Whilst we would generally complete all three stages, our approach has been designed so
that you can instruct us to complete only those stages you deem appropriate.
Our Investment Philosophy
Our aim is to try and maximise the returns you receive on your investments. We do this by
avoiding unnecessary risk, improving returns through primarily our selection of model
portfolios and asset allocation. We look to make your portfolios as tax efficient as possible.
Some of our clients do not want to take investment risk or are able to achieve their
objectives without doing so and such clients hold their assets in cash or near cash form.
However, in most cases the strategy we design will often require the construction and
management of an investment plan using primarily our model portfolios.
We believe any investment strategy should take into account time horizons for investments
and acceptable levels of investment risk. It should also provide for regular reporting on
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investment performance and agree the criteria against which the performance is to be
judged.
We offer two approaches in respect of our Investment Management. In either case the
portfolio is professionally constructed by a combination of statistical analysis and market
research, with the aim of producing optical investment returns over time, at any given level
of investment risk.
1. Advisory Investment Management
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We primarily offer our model portfolio service
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The portfolio is only reviewed at set times primarily on each quarter date in the
year.
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If you are using the model portfolio service any change of fund will be notified to
you immediately gaining your permission to proceed. It will be necessary for you to
contact LMJ Financial Management should you have any queries concerning the
change. Any changes will be discussed and agreed with you.
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We retain full control of your overall strategy and all associated tax planning
2. Discretionary Investment Management
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The selection of investments is provided by one or more external third party
investment managers.
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We provide the manager with a clear picture of your situation, your agreed level of
investment risk and the investment return which is to be targeted.
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The manager creates the portfolio, manages it on a day to day basis and has the
discretion to change investments as deemed appropriate.
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We regularly monitor performance against the pre-agreed criteria and report back
to you during regular review meetings.
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We retain full control of your overall strategy.
This approach means the portfolio is created and monitored on a daily basis by a specialist
investment manager. It enables a broader range of investments to be selected and
purchased at the lowest possible cost. The normal minimum investment for this service is
£200,000.
Before implementing any strategy we will discuss both approaches with you and establish
which, or what combination, is appropriate in your specific situation.
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Ongoing Service Choices
At LMJ Financial Management we do not believe that “one size fits all”. We therefore offer
three ongoing service propositions to choose from:
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Active Wealth Service
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Annual Wealth Service
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Ad-hoc Service
The choice of advisory and discretionary investment management is available under either
the Active or Annual Service. The following pages outline the three service levels available,
our remuneration structure and consent.
1. Active Wealth Service
The Active Wealth Service is designed to provide the core services required by clients who
appreciate the financial benefits of having a team of advisers actively managing their
financial affairs.
The Active Wealth Service aims to meet four key objectives identified by many of our
satisfied customers:
Time Saving
You understand the amount of time you can save by employing an Independent Financial
Adviser to manage your financial affairs. This will allow you to earn a better living or enjoy
more free times for the things that you enjoy.
Peace of Mind
You want to feel confident that your best interests are being considered and that you can
trust an organisation to be pro-active on your behalf. You are looking for assurances that
you receive a professional and efficient service.
Security
You want to know that your financial affairs are under control and being optimised. If
anything happened to you, you know that there is someone who has full details of your
affairs and is in a position to look after your family or business interests.
Investment Management
In order to ensure that you extract maximum value from your hard earned money, it is
important to ensure that once invested, it is managed efficiently. The benefit of a
successfully managed portfolio can be dramatic and have a direct effect on both your
standard of living and financial security.
In order to achieve good returns it is necessary to provide a high level of service. Much of
this will be unseen by you, as our aim is to add value without adding demands on your time.
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Ultimately we will be judged on results, but we believe the functions of our Active Wealth
Service play a vital role in its success. You will receive:
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Two review meetings each year-
We will have an annual review meeting and a half-yearly check point meeting with you each
year to:
-Update your profile
-Review any changes in your circumstances
-Review your investment schedule
-Review performance benchmarks for your portfolio
-Identify areas for further analysis or advice
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Half yearly valuation reports-
We will provide you with a comprehensive overview of your portfolio summarising the
performance of your investments, both pensions and investments every six months.
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New opportunity service-
We will very regularly review investment and taxation opportunities that arise, and provide
you with advice regarding anything suitable taking into account changes in your specific and
general personal circumstances.
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Unscheduled meeting service-
Additional meetings will be held at your request, to discuss any investment issue. These
meetings may be in addition to the normal half-yearly reviews.
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Existing portfolio administration service-
Administration of your existing portfolio includes:
-Advice/recommendations on fund switches for existing products, including the
administration of these switches
-Organisation of unit statements
-Maintaining and updating your file
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Priority response service-
Rapid response telephone advice in respect of general enquiries.
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Second opinion service-
We are happy to give an opinion on any investment opportunities that you are considering.
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Protection service-
Ensuring that your family and your business are protected from the financial effects of
unexpected illness or death.
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Generation planning service-
Helping you to ensure that as much of your wealth that you have created passes to the next
generation rather than the taxman.
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Pre & post retirement pension service-
We will help ensure that your standard of living is not affected just because it’s time to
retire.
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School fees planning service-
Whether it is your children or grandchildren, we can help to plan for this expense.
2. Annual Wealth Service
The Annual Wealth Service is for those clients who want to know that they have a financial
adviser familiar with their financial affairs but do not feel they need active management of
their finances.
The Annual Wealth Service will meet four key client objectives:
Time Saving
You understand that you can save some time by employing An Independent Financial
Adviser, but you are prepared to manage your own financial affairs on a day to day basis.
Peace of Mind
You want to feel confident that your best interests are being considered at least once a year.
You are looking for assurances that you will receive a professional and efficient service. You
accept that the Adviser will not be pro-active on your behalf.
Security
You want to know that your financial affairs are recorded and reviewed each year. If
anything happened to you, you know that there is someone who has basic details of your
affairs who will be in a position to assist your family or business associates.
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Investment Management
You require investment advice once a year and will take responsibility for any changes that
need to be made between reviews. You are aware that inactive portfolios have, by their very
nature, hidden dangers as they do not react to changes in economic or political
circumstances. The difference in the performance can be dramatic and have a direct effect
on your standard of living and financial security.
For the client who has decided that our Annual Wealth Service meets their needs, most of
the following functions are necessary to maintain a current client record:
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An annual review meeting-
We will have an annual review meeting with you to:
-Update your profile
-Review any changes in your circumstances
-Review your investment schedule
-Review the performance benchmarks for your portfolio
-Identify any areas which require further analysis and/or advice.
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Annual valuation reports-
We will provide you with a comprehensive overview of your portfolio each year summarising
its performance for both pensions and investments.
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Annual opportunity update-
We will make you aware of taxation and investment opportunities that have arisen in the
last 12 months.
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Existing portfolio administrative service-
Administration of your existing portfolio to include:
-Advice/recommendation on fund switches for existing products including the
administration of these switches.
-Organisations of unit statements
-Maintaining and updating your file
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Telephone advice service-
We will respond to general enquiries by telephone
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Protection service
Ensuring that your family and your business are protected from the financial effects of
unexpected illness or death.
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Generation planning service-
Helping you to ensure that as much of your wealth that you have created passes to the next
generation rather than the taxman.

Pre & post retirement planning service
We will help ensure that your standard of living is not affected just because it is time to
retire.
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School fees planning service
Whether it is your children or your grandchildren, we can help plan for this expense.
We will update your client file with valuations that we receive on your various investments,
as well as information that you provide.
This means when you require our advice we can react immediately without having to spend
significant time updating our files. You will receive annual reports but there is no active
management in place.
3. Ad-hoc Service
The Ad-hoc Service is for those clients who do not wish to have their affairs actively
managed. Nor do they wish to pay for an adviser to keep up to date records. Any future
work carried out will be charged as and when requested, in line with our published charges
applicable at that time, within our Client Agreement.
Were you to choose our Ad-hoc Service, the effect would be as follows:
-We will not pro-actively contact you as we would do with other clients, if we believe that
legislative or economic changes may be relevant to you. Rather, you take responsibility for
determining when such events necessitate help from a professional and you will contact us
accordingly. At such time there will be a fee for updating our records to achieve a level of
information necessary to give advice/analysis/recommendations. Thereafter, any work will
be charged at an agreed rate or cost.
-As we are not maintaining an up to date client record, we will not produce reports, annual
or otherwise, unless requested to do so. A charge will be made. Similarly, we will not provide
administrative series and telephone advice in response to general enquiries.
-Investments will not be actively monitored.
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Comparison of Available Services
Service provided
Annual Review Meeting
Half yearly check up
Annual valuation report
Interim valuation report
Investment Management- Discretionary or Advisory
Opportunities Service
Unscheduled meeting service
Existing portfolio administration service
Priority response service
Telephone response service
Our information service
Second opinion service
Protection service
General Planning service
Pre & post retirement pension service
School fees planning service
Active
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Annual
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x
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x
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x
x
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x
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x
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Ad-hoc
x
x
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Our ongoing feesThese fees are paid by clients requiring our ongoing service, which aims to ensure the
continuing suitability of the client’s initial strategy, through regular contact and/or meetings.
The fees which we charge annually to provide the ongoing service apply to our Active or
Annual Service proposition clients only and also depend on the investment proposition
chosen.
Example of ongoing advice charges
Active Wealth
Service
Annual Wealth
Service
AD Hoc
Investment
Amount
Annual Service
Charge
Example Annual
Service Fee
£200,000
1%
£2,000
£200,000
0.75%
£1,500
£200,000
N/A
£1,250
Please note that where the ongoing fee is paid as a percentage of the funds under
management, the amount we receive will vary depending on the investment performance
and the size of the fund.
The fee to be charged will always be confirmed in our fee agreement before proceeding, and
again this will be offset by any ongoing commission received from any product arranged as
part of our recommended strategy.
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For those on the Ad-Hoc service proposition a charge is made for any future work requested
and undertaken for clients. Rates of charge for different propositions are available on
request and as per our Client Agreement.
Other Specialist Services
You may ask us to provide specialist advice, which we may be unable to give. We can,
however refer you to someone who can advise in areas we cannot. If this happens we will
tell you, including in writing.
We are not able to advise you on the following types of investments:
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Direct investment into shares
Derivatives
Certain collective investment schemes (those not regulated by the FSA)
Share Exchange Schemes
Qualified Investor Schemes
Isle of Man experienced investor funds
Commodity based funds
Holiday property bonds
The merits of investment in a specific property
Experienced investor schemes
Qualified investor funds or experienced investor funds.
You should receive a separate agreement from them explaining what services they will
provide to you; they may be other financial advisers, solicitors, accountants or will writers,
Any person to whom we refer you to will take responsibility for the advice. LMJ Financial
Management may receive an introductory fee from the person concerned for conducting
this introduction on your behalf and this will be disclosed to you.
We can act for you if you live in the UK. There may be restrictions on how we can advise you
if any of the following apply:
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You do not live in the UK all the time
You are currently staying in the UK, but normally live abroad.
You are currently staying in the UK and plan to move or return to another country.
Please ask for details if you think this may apply to you.
Pages 1 to 11 are for you to keep.
Please complete and return page 12 - the Service Proposition Pack
Consent sheet.
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Client’s Consent
This is our standard Service Proposition Pack upon which we intend to rely. For your own
benefit and protection you should read these terms carefully before signing them. If you do
not understand any points please ask for further information.
You will have also received out Client Agreement which should be read in conjunction with
the Service Proposition Pack.
Please select your chosen Wealth Management Service by ticking the relevant box below:
The Active Wealth Service
The Annual Wealth Service
The Ad-Hoc Service
Client Name(s)
Client signature(s)
Date of signature(s)
Signed for and on behalf of the firm:
Adviser…………………………………………………………………………
Signature……………………………………………………………………….
Date of Issue…………………………………………………………………..
Please complete and return this page.
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